Great Canadian Gaming Corp reports 5.5% EBITDA decline and 3.5 pp EBITDA Margin decline from 40.1% to 36.6%
09.03.2016 • About Great Canadian Gaming Corp (
$GC) • By InTwits
Great Canadian Gaming Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Great Canadian Gaming Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.9%. At the same time it's in pair with industry average of 5.1%.
- CAPEX is quite volatile: 15 in 2015, 14.8 in 2014, 24.8 in 2013, 25.4 in 2012, 41.9 in 2011
- The company has highly profitable business model: ROIC is at 14.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Great Canadian Gaming Corp ($GC) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 388.2 | 408.7 | 407.3 | 446.5 | 462.9 | 3.7% |
| SG&A | 95.5 | 97.3 | 96.2 | 101.6 | 119.8 | 17.9% |
| EBITDA | 132.4 | 68.7 | 167.4 | 179.2 | 169.4 | -5.5% |
| Net Income | 26.2 | -27.6 | 63.1 | 78.4 | 74.6 | -4.8% |
Balance Sheet
|
|---|
| Cash | 134.7 | 121.1 | 192.6 | 330.6 | 207.5 | -37.2% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 332.6 | 439.9 | 441.0 | 442.0 | 443.0 | 0.2% |
Cash flow
|
|---|
| Capex | 41.9 | 25.4 | 24.8 | 14.8 | 15.0 | 1.4% |
Ratios
|
|---|
| Revenue growth | 1.2% | 5.3% | -0.3% | 9.6% | 3.7% | |
| EBITDA growth | 67.8% | -48.1% | 143.7% | 7.0% | -5.5% | |
| EBITDA Margin | 34.1% | 16.8% | 41.1% | 40.1% | 36.6% | -3.5% |
| Net Income Margin | 6.7% | -6.8% | 15.5% | 17.6% | 16.1% | -1.4% |
| SG&A, % of revenue | 24.6% | 23.8% | 23.6% | 22.8% | 25.9% | 3.1% |
| CAPEX, % of revenue | 10.8% | 6.2% | 6.1% | 3.3% | 3.2% | -0.1% |
| ROIC | 9.2% | 2.2% | 15.1% | 15.5% | 14.3% | -1.2% |
| ROE | 6.4% | -7.9% | 21.5% | 22.2% | 19.1% | -3.0% |
| Net Debt/EBITDA | 1.5x | 4.6x | 1.5x | 0.6x | 1.4x | 0.8x |
Revenue and profitability
The company's Revenue increased on 3.7% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 9.4 pp from 16.9% to 26.2% in 2015.
SG&A as a % of Revenue increased on 3.1 pp from 22.8% to 25.9% in 2015.
Net Income marign decreased slightly on 1.4 pp from 17.6% to 16.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 3.2%. CAPEX/Revenue decreased on 3.0 pp from 6.2% in 2012 to 3.2% in 2015. Average CAPEX/Revenue for the last three years was 4.2%.
Return on investment
The company operates at good ROIC (14.29%) and ROE (19.14%). ROIC decreased slightly on 1.2 pp from 15.5% to 14.3% in 2015. ROE decreased on 3.0 pp from 22.2% to 19.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is 2.6x. Net Debt / EBITDA jumped on 0.8x from 0.6x to 1.4x in 2015. Debt showed almost no change in 2015 while cash dropped on 37.2% in 2015.
Management team
The company's CEO Rod N Baker is a founder and has spent 7 years at the company.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Great Canadian Gaming Corp benchmarking vs. other companies in Consumer, Cyclical industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amaya Inc ($AYA) | 216.4% | 311.5% | 85.2% | 254.0% | |
| Partner Jet Corp ($PJT) | -19.9% | -15.2% | 1.2% | 119.7% | |
| Kelso Technologies Inc ($KLS) | 80.5% | 577.5% | 487.8% | 81.4% | |
| XPEL Technologies Corp ($DAP.U) | 46.3% | 76.6% | 67.7% | 65.5% | |
| Holloway Lodging Corp ($HLC) | | -24.6% | 2.7% | 62.7% | 13.5% |
| |
|---|
| Median (68 companies) | 16.1% | 5.3% | 5.3% | 7.0% | 4.5% |
|---|
| Great Canadian Gaming Corp ($GC) | | 5.3% | -0.3% | 9.6% | 3.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Restaurant Brands International Inc ($QSR) | | | 69.7% | 87.0% | 42.9% |
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | 84.3% |
| DEQ Systems Corp ($DEQ) | 74.3% | 77.5% | 78.4% | 84.7% | |
| Cara Operations Ltd ($CAO) | | | 79.2% | 78.9% | 78.4% |
| Second Cup Ltd/The ($SCU) | 91.1% | 86.6% | 85.1% | 72.7% | 81.1% |
| |
|---|
| Median (61 companies) | 37.0% | 35.3% | 32.1% | 34.6% | 36.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
| Gamehost Inc ($GH) | 44.2% | 46.1% | 45.7% | 45.9% | 42.8% |
| Amaya Inc ($AYA) | -5.7% | 7.2% | 38.2% | 39.3% | |
| MTY Food Group Inc ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | 34.9% |
| Whistler Blackcomb Holdings Inc ($WB) | 34.8% | 36.0% | 35.9% | 36.4% | 35.4% |
| |
|---|
| Median (66 companies) | 8.4% | 7.9% | 9.6% | 9.8% | 10.1% |
|---|
| Great Canadian Gaming Corp ($GC) | 34.1% | 16.8% | 41.1% | 40.1% | 36.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | 32.5% | |
| WestJet Airlines Ltd ($WJA) | 3.9% | 7.9% | 19.5% | 18.6% | 22.5% |
| Exchange Income Corp ($EIF) | 8.2% | 7.9% | 15.8% | 15.5% | 15.4% |
| Holloway Lodging Corp ($HLC) | 3.4% | 8.2% | 6.7% | 14.8% | 26.7% |
| Kelso Technologies Inc ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | |
| |
|---|
| Median (69 companies) | 2.6% | 2.7% | 2.8% | 2.3% | 3.1% |
|---|
| Great Canadian Gaming Corp ($GC) | 10.8% | 6.2% | 6.1% | 3.3% | 3.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Partner Jet Corp ($PJT) | -30.7% | -51.6% | -50.8% | 85.1% | |
| Kelso Technologies Inc ($KLS) | -121.3% | | | 48.8% | |
| XPEL Technologies Corp ($DAP.U) | 52.9% | 54.7% | 57.5% | 43.2% | |
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
| Iplayco Corp Ltd ($IPC) | -35.4% | 23.0% | 58.5% | 33.6% | 10.9% |
| |
|---|
| Median (69 companies) | 10.7% | 9.8% | 10.1% | 9.7% | 11.0% |
|---|
| Great Canadian Gaming Corp ($GC) | 9.2% | 2.2% | 15.1% | 15.5% | 14.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mountain China Resorts Holding Ltd ($MCG) | | | | 317.1x | |
| Restaurant Brands International Inc ($QSR) | | | 3.8x | 33.6x | 5.8x |
| Allied Hotel Properties Inc ($AHP) | | | | 21.3x | |
| Hudson's Bay Co ($HBC) | 8.7x | 3.8x | 3.6x | 19.1x | 3.6x |
| Amaya Inc ($AYA) | | 17.9x | 1.8x | 13.5x | |
| |
|---|
| Median (58 companies) | 1.3x | 1.2x | 1.8x | 2.1x | 1.4x |
|---|
| Great Canadian Gaming Corp ($GC) | 1.5x | 4.6x | 1.5x | 0.6x | 1.4x |
